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Auto Enrolment – Develop an initial plan

Posted by: edwinsmith on April 30th, 2014

Once an employer knows their staging date, it is a good idea to develop an initial plan in order to understand the preparation tasks which must be carried out, when the tasks should be completed and who will implement them.

To save time and the ensure the registration deadline is not missed, employers can also log in to automatic enrolment registration online and start providing some of the information required as and when it is received.  Such as the name and address of the employer, the PAYE reference number, pension scheme reference and the address.

In order to be fully prepared for auto enrolment, employers must complete a number of tasks, including:

  1. Assessing the workforce
  2. Reviewing internal processes and testing software to ensure it will support automatic enrolment
  3. Reviewing existing pension arrangements and setting up a scheme if necessary
  4. Communicating with staff on how they will be affected by auto enrolment.

The time required to complete each task will vary depending on the size of the workforce and the existing arrangements that are in place.  Scheduling a target date for the completion of each task will ensure that employers allow sufficient time to be fully prepared for auto enrolment before their staging date.

Employers will need to involve key people in the planning process, such as the person who runs payroll, your HR administrator and your accountant as they will be carrying out some of the day-to-day activities once automatic enrolment is up and running.

The Pensions Regulator have produced a quick guide to preparing for automatic enrolment (PDF, 12 pages) leaflet summarising the preparations needed and to help develop initial plans.

This is the third installment in a series of articles regarding auto enrolment as detailed  on our Employer Action Plan. Previous installments detailed below:

1 – Know your staging date

2 -

For more information on pensions or for help making an initial plan please contact us.

HMRC – Second incomes campaign

Posted by: edwinsmith on April 28th, 2014

HMRC have introduced another campaign that targets individuals who supplement there main source of income (usually employment) with an additional income from working for themselves that has not previously been declared and taxed .

This would be classed as a second income for the purposes of this campaign and would include income from activities such as:

  1. Consultancy fees –training, property plans etc.
  2. Organising parties and events
  3. Providing services like taxi driving, hairdressing or fitness training
  4. Making and selling craft items
  5. Buying and selling goods eg market stalls, car boot sales, eBay trading etc

The purpose of the campaign is to provide an incentive for individuals to make a voluntary disclosure of a second income in order to obtain best possible terms from HMRC.

If HMRC discover by their own means an undisclosed second income then penalties incurred by the individual may be higher and the individual could face criminal prosecution.

An individual will have 4 months (from the date of HMRC receiving notification) to calculate and pay the tax owed but if more time is needed to pay then a call to the HMRC help line (0300 123 0945) should be made.

HMRC can be notified by completing D01 - Second incomes campaign notification form  and follow instructions on submission of form (either online or post).

Once acknowledgement has been received by HMRC then complete D02 Second incomes campaign disclosure form and follow instructions on submission of form (either online or post).

Full details of campaign including a helpful video on what is deemed a second income can be found at HMRC second incomes campaign.

Please contact us if you require any assistance or advice concerning the second incomes campaign.


Auto Enrolment – Nominate a contact

Posted by: edwinsmith on April 22nd, 2014

In order to help employers manage their auto enrolment responsibilities, the Pensions Regulator will send regular emails to a nominated contact at key stages along the process.

Employers can nominate up to 2 contacts.  The primary contact must be the most senior person in the organisation, for example the CEO or managing director.  The secondary contact is optional and would typically be the person who will manage or implement the auto enrolment process, for example HR manager or payroll accountant.

The process of nomination is a simple form whch can be completed on the Pensions Regulator website including the name, job title and contact details for each nominee.   You will also need either the employers PAYE reference number or the unique code included on the letter each employer should receive when their staging date is less than 12 months away.

Please note that nominating a contact does not mean that the employer is registered for auto enrolment.  The full responsibility for complying with duties remains with the employing organisation – not the nominated contact.

To nominate a contact on the pensions regulator website click here.

This is the second instalment in a series of articles regarding auto enrolment as detailed on our Employer Action Plan.

First instalment – Know your staging date

For further advice on pensions and payroll please contact us

Tax codes and Class 2 NIC underpayments

Posted by: edwinsmith on April 16th, 2014

Some taxpayers will have received tax codes for 2014/15 which contain a reduction to their personal allowances for class 2 national insurance underpayments. Relevant taxpayers should have received correspondence from HMRC last year regarding the outstanding liabilities asking for payment. Taxpayers were advised that if payment was not subsequently made, then the collection would be made via a salary, pension or other PAYE income by making an appropriate adjustment by the PAYE code.

There is still the opportunity to make payment and if the debt is paid, HMRC will amend the tax code.

An individual can contact the HMRC National Insurance contribution helpline on telephone: 0300 200 3505 for information on how to make a payment.

If you need any additional advice then please contact us.


Filed under: National insurance, PAYE, Tax

New timetable for RTI penalties and interest

Posted by: edwinsmith on April 8th, 2014

New timetable for RTI penalties and interest

When PAYE (RTI) legislation was introduced from 6 April last year the proposed automatic penalty and interest charges were delayed for one year in order that Employers would be provided time to adapt to the changes involved with online filing of Real Time Information.

There have been some problems in the first year of RTI and HMRC have recently announced that the introduction of the automatic penalties and interest will be phased in over the coming tax year. This is after consultation and feed back from Employers etc concerning the operation of RTI.

The time table for these changes will be:

  1. April 2014 – ‘in-year’ interest on any ‘in-year’ payments not made by due date (see below);
  2. October 2014 – automatic ‘in-year’ late filing penalty; and
  3. April 2015 – automatic ‘in-year’ late payment penalties.


Interest from 2014/15

‘In year’ interest will affect Employers on any late payments (see below) in 2014/15, starting from the first payment date of 19 May 2014. HMRC will issue a late payment interest charge notice when the employer has paid the outstanding PAYE in full.

Charge 2014-15 Interest charged from dates below to date payment made in full
PAYE tax and Class 1 NIC charges  and Construction Industry Scheme payments 19th of relevant month/quarter for all cheque payments and 22nd of relevant month/quarter for all electronic payments
Earlier Year Update 19 April for all cheque payments and  22 April for all electronic payments
Penalties Relevant due date of the penalty charge
Class 1A NIC charges 19 July for all cheque payments and  22 July for all electronic payments
Class 1B NIC charges 19 October for all cheque payments and 22 October for all electronic payments


For further details see HMRC help sheet PAYE/NIC etc Interest - Helpsheet

We will detail the late filing penalties due to be introduced in October 2014 nearer this date.

Please contact us for further advice.

Private Residence Relief (Capital Gains Tax) – Reduction in final period exemption

Posted by: edwinsmith on April 4th, 2014

A change announced in the 2013 Autumn Statement and to be introduced in 2014 Finance Bill will be to reduce the final period for which Private Residence relief can be given for capital gains tax.

Previously as long as the property has been your only or main home at some point during your period of ownership, the last three years (36 months) have always qualified for relief even if you did not live there in that period.

From 6 April 2014 the final period exemption will be reduced from 36 months to 18 months.

In recognition that a person moving into a care home may take longer to decide to dispose of their former home, the period will remain a 36 month final period for this group of people.

This measure will not have effect where contracts for the sale of the property are exchanged on or before 5 April 2014 and completed on or before 5 April 2015.

In addition to the above change we understand HMRC are apparently reviewing the tax payer’s ability, with one or more homes, to nominate which property is to be to be treated as the main home. You are entitled to private residence relief on one home. It’s possible that after consultation HMRC may decide to remove a tax payer’s ability to nominate a property from next year.

For further details on the Private Residence relief for capital gains see our previous article which is subject to above changes - Private residence relief from capital gains tax.

If you require any further tax advice on capital gains tax in respect of selling a property and private residence relief please contact us.

Dates and deadlines: April 2014

Posted by: edwinsmith on April 1st, 2014

Dates and deadlines: April 2014

1 April: Corporation tax payment for a company not within the instalment regulations: year ending 30 June 2013.

Reduction in main rate of corporation tax to 21%.

5 April: End of month 12 for PAYE (RTI). All FPS (Full Payment Submissions) due if taking advantage of concession. This concession ends on this date for employers with less than 50 Employees.

2013/14 tax year end.

6 April: Start of new tax year 2014/15.

Start of new PAYE (RTI) reporting concession for existing employers with less than 10 employees.

7 April: Online VAT return due to be filed and electronic payment of VAT due to be cleared into HMRC bank: quarter ended 28 February 2014.

10 April: Direct debit VAT payment will be taken: quarter ended 28 February 2014.

14 April: Submission of forms CT61 together with payment of tax due: quarter ended 31 March 2014

19 April: CIS monthly return deadline: month ended 5 April 2014.

19 April: Cheque payments for PAYE/NI, student loan, CIS  to be cleared into HMRC bank: month ended 5 April 2014.

Final EPS submission including Employer end of tax year 2013/14 declarations should be submitted to avoid late filing penalty.

22 April: Electronic PAYE/NI etc payments to be cleared into HMRC bank: month ended 5 April 2014.

30 April : Company tax return CT600 due to HMRC: years ending 30 April 2013.

30 April: Company accounts (Private Limited Co) due to be filed: years ending 31 July 2013.

30 April: Company accounts (Public Companies) due to be filed: years ending 31 October 2013.

1 May : Corporation tax payment for company not within the instalment regulations: years ending 31 July 2013.